• Equity Markets: Equity markets had a moderately positive day yesterday with the S&P500 +0.25% and the Nasdaq +0.59%, on little corporate or macro news. Whilst Europe was little changed +0.07%. In the US, only three sectors were in positive territory and 43% of stocks ended higher. Industrials and IT were best. Energy and Materials were weakest. Boeing jumped 10% after its CFO signalled higher deliveries and positive free cash flow in 2026. In Europe, six of eleven sectors were in positive territory, with Financials and IT best, whilst Consumer Staples and Consumer Discretionary were worst. Bayer rose 12% on Solicitor General’s support for a Supreme Court appeal to settle issues around Roundup weedkiller lawsuits. Thyssenkrupp rose 8.3% on a deal with its union on steel segment restructuring.
• Macro: In macro news yesterday In Europe, Eurozone Unemployment Rate for October was 6.4%, flat on the previous month. Also, the Eurozone’s preliminary CPI for November was +2.4% for core inflation in line with estimates. UK Nationwide House Prices rose 0.3% in Nov versus the +0.1% est. This morning Irish Composite and Services PMIs both improved from 53.7 to 55.8 and from 56.7 to 58.5, respectively. In the US, Wards Total Vehicle Sales (Nov) was 15.6m, up from 15.32m previously and above the 15.4m estimate. Economic releases today include Services and Composite PMI (Nov F) data from the EU, France, Germany, US and UK. Also, from the Eurozone PPI (Oct) and Irish Unemployment Rate (Nov). Then there is the US, MBA Mortgage Applications, ADP Employment Change (Nov), Import Prices (Sep), Capacity Utilization (Sep), Industrial and Manufacturing Production (Sep) and finally the ISM Services report (Nov).
• Stocks: L’Oreal: (Overweight, PT €415, +12% Upside): Update regarding the potential stake in Armani. Molten Ventures (CF&Co. Overweight, PT 620p, +36% Upside): CEO meeting summary.
• Debt: Bond yields were little changed yesterday as the Fed remains in quiet period ahead of its December 10th meeting, and ahead of the large raft of data due out today

Opportunities this week:

• Last week we met with the investor relations team of DCC to discuss its planned strategic change to focus on its Energy division. We believe its singular focus on a faster growing/higher return segment will serve investors well. BUY PT: £71.40
• Following our meeting with the IR team of UK peer Entain last week, who signalled the pipeline for US states to regulate gambling is light for 2025, we are removing Flutter from our Analyst Conviction List. We retain our BUY rating, PT: $300.
• We had a very positive meeting with the investor relations team from Smurfit Westrock last week which served to boost our conviction in the opportunity it has to improve the legacy Westrock business. BUY PT: $61.